SMS Management & Technology (SMX)

Patersons maintained a “hold" recommendation on
SMS Management & Technology
and cut its price target by 5 per cent to $4.96 from $5.24 on a risk of SMS missing its first-half 2013 net profit after tax guidance range.

“In October, 2012, SMS provided AGM guidance for 1H13 NPAT of $12.5 million to $14 million (down 8-18 per cent on 1H12) based on current trading conditions and the potential for certain sales to close and convert to revenue over coming weeks’," Patersons noted.

It said recent contact with industry participants confirmed “conditions have become increasingly challenging in recent weeks, particularly in Victoria and the ACT, and there has been no clear pick up in the ICT, financial service and resources sectors," Patersons said.

It reduced its medium-term forecasts by about 3 per cent to first-half 2013 NPAT of $12.1 million from $12.5 million and reduced its dividend assumption to a FY13 dividend of 28.5¢ a share, from a flat assumption of 30.5¢ a share.